Banking
Mar. 7, 2012
Is your non-recourse guaranty at risk of being deemed fully recourse?
A poorly worded guaranty can make a world of difference when liability is at issue. By Anita Sabine and Suzzanne Uhland of O'Melveny & Myers LLP
A recent Michigan Court of Appeals decision sends a warning to guarantors of commercial mortgage-backed security loans that loosely drafted guaranty language could leave them on the hook for hundreds of millions in deficiency judgments. The appellate court upheld a lower court's finding that the borrower and its guarantor were both responsible for a more than $2 million deficiency judgment after foreclosure of a non-recourse...
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